Argos-owner GUS hopes to float its trendy fashion house Burberry on the London Stock Exchange in two months time, it said today.

The retailer plans to sell off as much as 25% of the business, famous for the traditional checked fabric pattern on its goods, to institutional investors.

Today's move comes 18 months after GUS first signalled its plans for a float following the dramatic turnaround at Burberry.

The luxury brand has been revived by fashion guru Rose Marie Bravo, who arrived from the United States to take charge in 1997.

A host of celebrities have rediscovered the label, from Madonna to Kate Moss, and profits have climbed by almost £80 million in three years.

GUS' confirmation also follows speculation it could delay the listing given the fragile state of the market for new share issues in the City.

Investors gave a lukewarm reception to music giant HMV and pubs group Punch Taverns was forced to bring down its targeted share price.

But chief executive John Peace dismissed such concern today and said investors would soon be able to "participate directly" in the Burberry story.

He added: "Burberry is a very high quality business with a very high quality management team.

"We are not a venture capital outfit trying to bring this to market quickly, we have been planning this for 18 months."